Correlation Between Evofem Biosciences and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Evofem Biosciences and Fortress Biotech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Evofem Biosciences and Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evofem Biosciences and Fortress Biotech Pref, you can compare the effects of market volatilities on Evofem Biosciences and Fortress Biotech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Evofem Biosciences with a short position of Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evofem Biosciences and Fortress Biotech.
Diversification Opportunities for Evofem Biosciences and Fortress Biotech
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evofem and Fortress is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and Fortress Biotech Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech Pref and Evofem Biosciences is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Evofem Biosciences are associated (or correlated) with Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech Pref has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and Fortress Biotech go up and down completely randomly.
Pair Corralation between Evofem Biosciences and Fortress Biotech
If you would invest 545.00 in Fortress Biotech Pref on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Fortress Biotech Pref or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Evofem Biosciences vs. Fortress Biotech Pref
Performance |
| Timeline |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fortress Biotech Pref |
Evofem Biosciences and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evofem Biosciences and Fortress Biotech
The main advantage of trading using opposite Evofem Biosciences and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evofem Biosciences position performs unexpectedly, Fortress Biotech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| Evofem Biosciences vs. Tonix Pharmaceuticals Holding | Evofem Biosciences vs. Sonnet Biotherapeutics Holdings | Evofem Biosciences vs. Palisade Bio | Evofem Biosciences vs. Ibio Inc |
| Fortress Biotech vs. Checkpoint Therapeutics | Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Reviva Pharmaceuticals Holdings | Fortress Biotech vs. Kodiak Sciences |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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